Graduated rate

Graduated Rate – A graduated rate is a tax structure in which the tax rate increases progressively as the taxable income or amount increases. This system is designed to ensure that individuals or entities with higher incomes or larger taxable amounts contribute a greater proportion of tax compared to those with lower incomes. Graduated rates are commonly applied in progressive tax systems, including personal income tax, corporate tax brackets, and certain property taxes, to promote equity and fairness in taxation.

Example: An individual earning ₹5 lakh may be taxed at 10%, while someone earning ₹15 lakh may be taxed at 20%, reflecting the graduated rate structure...